NZX
19/01/2015 08:40
GENERAL
NOT PRICE SENSITIVE
REL: 0840 HRS NZX Limited
GENERAL: NZX: Completion of SuperLife acquisition & notice of resignation
NZX today announced completion of its acquisition of leading New Zealand
superannuation and passive funds manager SuperLife Limited.
The initial purchase consideration was $20 million. Of this amount, $10
million was paid in cash, funded by a new bank debt facility, and $10 million
was paid via the issuance of NZX shares to the vendors. The issue price for
these shares was $1.21 per share and they are subject to disposal
restrictions for 12 months.
Further payments of up to $15 million may become payable in future dependent
on the retention and growth of SuperLife's funds under management over a
three year period. These further payments, if targets are achieved, will be
$5 million of NZX shares at the above issue price and up to $10 million in
cash.
NZX expects the transaction will be earnings and EPS accretive over the 2015
financial year.
NZX has for some time been exploring options to grow the scale of its passive
funds management business and funds management capabilities, and SuperLife's
passive approach and customer base makes the business an excellent strategic
fit with NZX's existing Smartshares business.
NZX will provide a full update on the acquisition and future growth plans at
NZX's full year results announcement in February 2015.
NZX also today announced that Hon. Simon Power QSO intends to step down from
the Board at NZX's Annual Meeting to be held in May.
Simon's decision was taken in consultation with Westpac and the NZX Board and
reflects an assessment that there may be potential conflicts of interest
between Simon's role as General Manager of Westpac's private wealth
management business (with day-to-day responsibility for that business) and
his role as a Director of NZX as NZX's strategy regarding its passive funds
management business has evolved into a core growth strategy.
These matters have been managed to date through the appropriate conflict
management protocols. These protocols remain in place and will be reviewed in
conjunction with a review of NZX's funds management business governance that
is currently underway.
Chairman Andrew Harmos commented: "On behalf of the Board I would like to
acknowledge and thank Simon for the valuable contribution that he made during
his two and a half years on the Board, and as a member of the Regulatory
Governance Committee. While sensible protocols can be relied on in most
cases, Simon's direct management accountability for a competing business was
the defining factor in his decision to resign."
The Board has begun the recruitment process for a new Director and will
provide an update at its Annual Meeting in May.
For further information please contact:
Kate McLaughlin
Corporate Communications
T: 09 309 3654
M: 027 533 4529
E: [email protected]
End CA:00259847 For:NZX Type:GENERAL Time:2015-01-19 08:40:57
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